Do Not Call Register means big fines for small business

Published on 03/02/2010

There’s no question that fax marketing can be a nuisance and needs to be regulated but will the benefits be the same if the Do Not Call Register is extended to business-to-business and business-to-government calls? Will it provide the productivity gains that small businesses believe it will deliver or will it actually do more harm than good?

Many business commentators are becoming increasingly concerned about the effects of the changes.
One of the major concerns is that few small businesses believe the Act will apply to them. But the truth is, even the smallest businesses could face fines of up to $1.1 million – if they repeatedly choose to ignore the new obligations under the new Do Not Call Register regime. Not to mention the nightmare of a Federal Court case or a formal investigation by ACMA.

So how will it work?

For starters, if you’re planning to call another business to discuss a possible business opportunity, you’ll need to check your contact list against the register and remove any numbers that match. All of this will most likely cost not just money, but time. Both of which are in short supply in most small businesses.

The legislation is unlikely to be straightforward, either (when is it ever?). So small business will need to take the time – or pay for the expertise – to understand it. The risks of not doing so are just too great.

A bias for big business
One of the biggest concerns of small business commentators is that the changes will favour existing relationships – in other words, big business. What impact will the Do Not Call Register have on the ability to compete with the big boys if you can’t tell a new customer about your better mousetrap because they are on the Do Not Call Register? Keeping in mind that established firms who already have a relationship with this new customer can call under the new laws.

In effect, it’s a form of protection for incumbents. So it’s likely to stifle innovation and entrepreneurship, stemming the flow of new products and services.

What are your alternatives?
Forget about email – there’s already law governing that. If you’re not picked up by the spam filter, you’ll be picked up by the Spam Act. You could try sending a letter, but what are the chances of that working?

You can also forget about making a call to set up a face to face appointment – even that will be banned under the DNCR if this proposal becomes law.

You’ll need to find another way to get their attention, which means traditional, and expensive, marketing. Instead of paying 50c or so for a call, you’ll need to pay big dollars for printing, postage or media – with far less chance of success.

Make your voice heard
If you market to other businesses, you’ll know that calling is a fundamental part of doing business today. You’ll also know you don’t have the marketing budgets to compete with the big boys.

The extended Do Not Call Register is likely to put your business at a great disadvantage. Make sure Canberra knows that business doesn’t want the protections of the Do Not Call Register. Otherwise you’ll need to dramatically re-think the way you do business – or risk a hefty fine.

Source: ADMA, Do Not Call Register means big fines for small business 27-1-2010.

The opinions expressed in the above article are those of the author and not of Optus or its related bodies corporate. Readers should seek their own advice.

ADMA agrees to SingTel Optus Pty Limited and or a related body corporate publishing this article in any publication it chooses.


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